The flight of capital from the legal system accelerated once the Indian government eased its tight control with economic reforms that started in 1991, the report says.

FORBES: India Has Lost At Least A Half-Trillion Dollars To Corruption Since Independence

As De Soto has said, one of the biggest political challenges facing developing countries is to bring the assets of the extralegal sector into a more inclusive legal property system in which they can become more productive and generate capital for their owners.

FORBES: Making Business Work for the Poor